SIDC expects to break even by 2025-end: Exec

Logo of Saudi Industrial Development Co. (SIDC)

Saudi Industrial Development Co.’s (SIDC) CFO, Ahmed Hassan Shteiwi, said that accumulated losses reached SAR 268 million at the end of the first quarter of 2024, and nearly 97.13% of these losses will be offset by reducing the company’s capital. According to studies, the company is expected to reach the breakeven point by the end of 2025.

In a statement to CNBC Arabia, he added that the capital reduction is expected to directly contribute to achieving the company's vision and strategy to restructure capital.

Shteiwi also went on to say that the company has short-term debts that constitute about 5.3% of the company's capital, noting that the company has the ability to generate sufficient cash flows to meet its obligations when they become due. There has been no need to reschedule these debts, given that the company restructured its debts 10 years ago.

Meanwhile, SIDC’s presence in Egypt is delivering returns for the company, pointing out that the intangible returns are greater than tangible returns. SIDC, like other companies with investments in Egypt, has been hurt by the flotation of the Egyptian pound. However, it has taken some quick initiatives and measures, such as investing in the stock of basic raw materials and implementing some hedging measures.

SIDC plans to boost revenues by introducing new products, developing existing products to meet market needs, and launching retail exhibitions. It also plans cost rationalization.

He added that the company will expand in the retail sector by launching exhibitions with the new identity and expanding the online retail sales of its subsidiary.

According to the available data on Argaam, the Capital Market Authority (CMA) approved SIDC’s application to reduce its capital from SAR 400 million to SAR 135 million, thereby reducing the number of shares from 40 million to 13.5 million.